Analysis of Marketing Strategies of Nestle: A Study of Home, Supplier, Partner and Customer Country

This report analyzes the marketing strategies of Nestle, a transnational food and beverage company. It includes a star analysis and value chain analysis of Nestle's home, supplier, partner, and customer countries. The report also provides recommendations for Nestle's overall strategy.

Running head: INTERNATIONAL BUSINESS
International Business
Name of the Student
Name of the University
Author note

1INTERNATIONAL BUSINESS
Introduction
The report helps in proper analysis of different marketing strategies of the well known
company named Nestle. Nestle is one of the largest as well as well known companies in the
entire world and the Nestlé’s headquarter is situated in Vevey Switzerland. The inauguration of
the respective company was conducted in the year 1866 and till date they have implemented
different strategies that have helped them in being the best companies within the competitors.
The main aim and purpose of the report is to analyze the different marketing strategies
along with proper star analysis as well as value chain analysis of Nestle. Proper information has
to be provided on the home as well as supplier country of Nestle along with customer and partner
country wherein it is continuing their business.
The structure of the report includes proper introduction on the home, supplier, customer
as well as partner country of Nestle. The overall strategy as well as recommendations has to be
provided as this will help in analysis of the marketing strategies.
Home country
Nestle is one of the transnational drink as well as food company that is situated in Vevey,
Vaud, Switzerland. It is one of the largest food organizations in the entire world that has been
measured with the help of revenues along with other metrics as well. () helped in identification
of the importance of the home country with the help of analyzing the proper influence of the
competitive advantage. The different factors of Porter’s Diamond Model that includes factor
conditions, demand conditions, strategy of firm as well as relative and rivalry industries has been
used in order to properly analyze the competitive advantage of the respective company in the
home country (Appiah-Adu and Amoako 2016).

2INTERNATIONAL BUSINESS
Nestle continues the reign at top of the food as well as beverage industry, however the
top competitor of Nestle is Britannia in the food and beverage industry and in India, Nestle is the
second largest consumer of Nestle Products after Switzerland (Hallback and Gabrielsson 2013).
Furthermore, the consumers in India are sophisticated as well as knowledgeable with the
different interests that are changing in nature. Nestle is one of the top food and beverage
companies among the competitors as they use cheaper substitute products for their different
items and they stand out in the crowd in their home country as well (Perreault Jr, Cannon and
McCarthy 2013).
The Porter’s diamond Model helps in proper identification of the rivalry or competitors in
the home country as the factor that is competitive in nature. In the present era, Nestle is facing
huge amount of challenge as well as competition from Britannia. Furthermore, Nestle is
protecting the brand image of their brand from other competitors by trying to distinguish itself
from the Britannia. Proper strategic decisions have been implemented as this will help in
contributing to the success of the entire brand (Appiah-Adu 2016).
Partner Country
The partner country is the second component after home country. Partner nation for the
organization is wherein the partner companies are operated as well as established. The proper
contribution of partner organization as well as country is vital in nature as this helps in building
proper value of the entire company and this helps in determination of success as well. Nestle
company has proper strategy of franchising that helps them in maintaining proper place in the
entire competitive market. Nestle is trying to secure world class position in different other
sectors as well other than beverages (Galician 2013).

3INTERNATIONAL BUSINESS
The respective company properly manufactures as well as sells the branded beverage to
their customers. The Nestle Company has able to bring the idea to provide their products as well
as services to the different areas as well as countries. The headquarter of the company is situated
in Vevey, Vaud, Switzerland and it is operating in more than eight more countries as well that
includes The United States of America (Armstrong et al. 2015). The net revenue of the Nestle
Company is more than 89.46 billion CHF and it is serving more than 350 million customers as
well in the entire nation (Atwal and Williams 2017). All the main as well as major partners are
located strategically in order to enter as well as serve different corners of the entire global market
of Nestle through different strategies of localization as well as franchising. Nestle Company is
the first and foremost in the entire food and beverage industry and this is making them attract
more customers in the competitive market as well (Williams and Nestle 2015).
Firm strategy,
structure and rivalry
Chance
Supporting and related
industries
Government
Condition of demand
Conditions of factors

4INTERNATIONAL BUSINESS
Figure 1: Porter’s Diamond Model
(Source: Dadzie et al. 2017)
Supplier Country
The raw materials of the respective organization are based entirely on the sourcing of the
supplier country. The different organizations in the market strive for the proper identification of
the best supplier in the entire market in order to gain proper competitive advantage as well
(Bhattacharya 2016). The inbound logistics plays a vital role in the act of receiving, distributing
as well as delivering required inputs that is cost efficient as well as cost beneficial in nature.
The star analysis of Nestle helped in understanding the long run relationship with
different suppliers as well. The mineral water that is packed as well as produced by Nestle is one
of the essential business units that are operating in an industry and it has proper potential to grow
further as well (Dadzie et al. 2017). There are different other companies in the market that are
dealing with proper introduction of mineral water; however Nestle has properly maintained a
significant kind of position in the entire market. The brand Nestle have the capacity in
maintaining proper market share and this can require few more potential to become cash cow in
the next few years as well (Baker and Saren 2016).
Therefore, it can be seen that there is rise in population as well as increased urbanization
leads to the increase in the consumption and Nestle is one of the major source of earnings for the
entire company as well (Payaud 2014). The other major factor that has properly contributed in
making star is the actual potential of Nestle for growth in the emerging markets and this helped
in providing potential growth opportunities to the entire business on a global scale as well.

5INTERNATIONAL BUSINESS
Customer Country
The final element in the international business strategy is the customer country that
helped in analysis of the target market identification and to deduce the strategies of marketing as
well. Nestle has served in more than 150 countries and this has helped them in making and
creating a global impact on the entire nation as well. The logo of Nestle Company is recognized
by more than 95% of the entire population in the world and this is one of the successful brands
globally with the help of adaptation of diversification strategy internationally. It has also adopted
diversification strategies in order to meet the interest of the customers.
In the entire international market, Nestle Company has properly maintained the same
kind of quality of the different products as well as services from the last few years. With the
proper help of standardization strategy that is utilized by Nestle Company, it has properly
developed a proper loyal base of customer across the world. The standardization strategy has
also helped the company Nestle in standardizing the economies of scale as well as plants that is a
kind of cost advantage to the entire company as well.
In order to plead the diverse kind of interests of the target customers, the approaches of
marketing of Nestle has been more localized. Hence, Nestle strives properly to understand the
different tastes as well as cultures of the different local markets before execution of the campaign
of marketing.
The Porter’s Value Chain Analysis of Nestle is shown below:

6INTERNATIONAL BUSINESS
Figure 2: Value Chain Analysis of Nestle
(Source: Created by author)
From the value chain analysis, it can be analyzed that Nestle has value created along with
the society as well. For Nestle, it helped in securing supplies along with proper improvement of
the community relationships as well as quality of product. Furthermore, the society gets value
with the help of improving the yields as well as increase in the income. The society gets proper
advantage by reducing the entire consumption of the natural resources and creating jobs for the
local communities as well.
Overall Strategy and Conclusions
Therefore, it can be inferred that Nestle is one of the successful food and Beverage
Company in the entire world. The Nestle Company has properly extended their operations as
well as brands along with customers in global scale. The Nestle Company that is located in
Vevey Switzerland, the respective company is gaining proper benefit from the other competitors
in the market as well. The different factors that include demand conditions, rivalry as well as the

7INTERNATIONAL BUSINESS
other supporting industries assist the entire company in gaining proper competitive advantage as
well. Nestle Company helps in creating value for the own organization as well as for the entire
society. The Nestle Company has gained proper value by securing supplies of high quality raw
materials along with proper improvement of relationship of community and quality of the
product as well.
Nestle Company helps in lowering the entire cost of distribution as well as manufacturing
and this helps them in achieving competitive advantage in the entire competitive market as well.
The Nestle Company uses different principles and not rules and this helped in creating proper
value that can be sustained over long term for employees, business partners as well as national
and international economies. The suppliers of Nestle help in contributing to the inbound logistics
of the company as well that provides proper competitive advantage to them as well. Hence,
home, supplier, partner as well as customer country have significant involvement in making
Nestle a globally competitive as well as successful organization against the other competitors in
the entire industry.

8INTERNATIONAL BUSINESS
References
Appiah-Adu, K. and Amoako, G.K., 2016. The execution of marketing strategies in a developing
economy: A case study of selected market leaders. African Journal of Economic and
Management Studies, 7(1), pp.9-29.
Appiah-Adu, K., 2016. The execution of marketing strategies in a developing economy.
Armstrong, G., Kotler, P., Harker, M. and Brennan, R., 2015. Marketing: an introduction.
Pearson Education.
Atwal, G. and Williams, A., 2017. Luxury brand marketing–the experience is everything!.
In Advances in Luxury Brand Management (pp. 43-57). Palgrave Macmillan, Cham.
Baker, M.J. and Saren, M. eds., 2016. Marketing theory: a student text. Sage.
Bhattacharya, C.B., 2016. Responsible Marketing: Doing Well by Doing Good. GfK Marketing
Intelligence Review, 8(1), pp.8-17.
Dadzie, K.Q., Amponsah, D.K., Dadzie, C.A. and Winston, E.M., 2017. How Firms Implement
Marketing Strategies in Emerging Markets: An Empirical Assessment of The 4A Marketing Mix
Framework. Journal of Marketing Theory and Practice, 25(3), pp.234-256.
Galician, M.L., 2013. Handbook of product placement in the mass media: New strategies in
marketing theory, practice, trends, and ethics. Routledge.
Hallbäck, J. and Gabrielsson, P., 2013. Entrepreneurial marketing strategies during the growth of
international new ventures originating in small and open economies. International Business
Review, 22(6), pp.1008-1020.

9INTERNATIONAL BUSINESS
Payaud, M.A., 2014. Marketing strategies at the bottom of the pyramid: Examples from Nestle,
Danone, and Procter & Gamble. Global Business and Organizational Excellence, 33(2), pp.51-
63.
Perreault Jr, W., Cannon, J. and McCarthy, E.J., 2013. Basic marketing. McGraw-Hill Higher
Education.
Williams, S.N. and Nestle, M., 2015. ‘Big Food’: taking a critical perspective on a global public
health problem.

10INTERNATIONAL BUSINESS